Exam 9: The Location Plan

The critical factor in locating factories is customer accessibility and convenience.

List an discuss the challenges that entrepreneurs face in designing the physical facilities for their businesses.

A new business might best begin

E-commerce can provide a benefit to small firms by compressing the sales cycle and easing cash flow difficulties.

Facilities that rent space only to new businesses and that provide services for them are called

John Pearson created Acme Online to allow paper suppliers to compete for manufacturers' orders over the Internet in live auctions. This model would best be described as

Roger Hemingway is analyzing regional differences in seeking a location for a new firm. He just read a Wall Street Journal article that ranked states according to the favorability of tax laws. Based on this information, he has decided to give further attention to one of the best states, which is

The primary advantage an entrepreneur gains by leasing rather than buying facilities is

The vast majority of bloggers earn around ____ a month through advertising.

The traditional physical store is sometimes referred to as the ____ store.

If a brand's product, such as a snack food, is not located close enough to the target customer, the customer will most likely be inconvenienced by traveling further to get the product.

It is possible for an entrepreneur to do business over the Internet without either a Web site or storefront.

Distinguish between general-purpose and special-purpose equipment in a factory setting, and cite the advantages of each.

List and explain the attractions and challenges of operating a home-based business.

You Make the Call-Situation 1 Entrepreneurs Alan Stein, 52, and his wife, Nancy Virts, 47, had a decision to make. Located just outside of Washington, D.C., their six-year-old company, Tanglewood Conservatories, was growing rapidly. The need for a larger space was pressing, as the current facility was just 4,000 square feet. They knew the move was risky. But encouragement from the Economic Development Commission in Caroline County, Maryland, in the form of tax breaks and financial assistance, along with a readily available workforce, convinced the couple to build a new facility in rural Denton, Maryland. Since the move, company sales have tripled. And the new facility has grown from 10,000 square feet to 40,000 square feet. (Source: Andrea C. Poe, "Head for the Hills," Entrepreneur, December 2006,p. 101.)

In the B2B model, the customers can best be described as

Which of the following is not a type of E-commerce customer focus model?

Businesses that operate in the home

Which of the following is not one of the major categories of e-commerce businesses?

List and describe the critical resource considerations that should guide the location decision?